A manufacturing company in western Pennsylvania had inconsistencies with their Plan Document and their installation of the Patient Protection and Affordable Care Act (PPACA). AIM was asked to evaluate the compliance and regulatory area of their plan, prior to being hired as their benefits consultant and broker.
AIM discovered that the client defined their Plan Year as beginning on January 1st but was planning to implement health care reform changes at their next renewal, which
was September. The issue, unknown to the client, was that the PPACA requires plans to implement the new changes effective at their next Plan Year after the law was passed. In this instance, the client was required to implement the changes as of January 1, 2011, but was advised that they could wait until September, which would result in a significant compliance issue.
AIM was able to assist the client in amending their Plan Documents to reflect how they operationally administer their plan and updating the documents to reflect a Plan Year with a September effective date. AIM also assisted in the retroactive re-filing of prior year 5500 Forms as well. The risk of federal penalties was removed and the client ensured that their plan materials were properly synchronized with the actual management of their plans. AIM was ultimately retained by the client. Other global reviews and examination of benefit plan aspects have resulted in additional changes and updates.
For more information contact your AIM representative at 1-866-284-4995.